Methanex Corporation (NASDAQ: MEOH): The Best-Of-Breed For Investing?


    M&G Investment Management Ltd. recently announced the acquisition of new stake in Methanex Corporation (NASDAQ:MEOH). The institutional investor has increased its shareholding in the Basic Materials company by 2.24% to 14.63 million shares with purchase of 0.32 million shares. This fresh investment now brings its stake to 19.20% valued currently at $264.5 million. In addition, Fidelity (Canada) Asset Managemen. raised its holdings by 1.39 million to 4.6 million shares. And The Vanguard Group, Inc. has lifted its position by 6.47% or 0.14 million shares – to 2.24 million shares.

    With over 0.67 million Methanex Corporation (MEOH) shares trading Wednesday and a closing price of $20.53 on the day, the dollar volume was approximately $13.77 million. The shares have shown a positive weekly performance of 7.60% and its price on 07/15/20 gained nearly 3.48%. Currently, there are 76.20M common shares owned by the public and among those 75.93M shares have been available to trade.

    The analysts have set the share’s price value over the next 12 months at a high of $36.00 and a low of $8.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Methanex Corporation stock is 2.90 for the next 12 months. The average price target is 4.15% above its last price level and an upside to the estimated low will see the stock lose -156.63% over that period. But an upside of 42.97% will see the stock hit the forecast high price target while mean target price for the stock is $19.00.

    The top 3 mutual fund holders in Methanex Corporation are M&G Global Dividend Fund, M&G (Lux) Investment Funds 1 – Gl, and Pear Tree Polaris Foreign Value F. M&G Global Dividend Fund owns 5.15 million shares of the company’s stock, all valued at over $93.03 million. The company bought an additional 0.31 million shares recently to bring their total holdings to about 6.75% of the shares outstanding. M&G (Lux) Investment Funds 1 – Gl bought 0.26 million shares to see its total holdings expand to 4.43 million shares valued at over $80.13 million and representing 5.82% of the shares outstanding. Pear Tree Polaris Foreign Value F now owns shares totaling to 2.78% of the shares outstanding.

    Shares of Methanex Corporation (NASDAQ: MEOH) opened at $20.17, up $0.33 from a prior closing price of $19.84. However, the script later closed the day at $20.53, up 3.48%. The company’s stock has a 5-day price change of 7.60% and 56.12% over the past three months. MEOH shares are trading -46.85% year to date (YTD), with the 12-month market performance down to -51.98% lower. It has a 12-month low price of $9.00 and touched a high of $44.33 over the same period. Currently, 0.67 million shares have been traded, compared to an average intraday trading volume of 815.26K shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 6.61%, 12.04%, and -24.96% respectively.

    Institutional ownership of Methanex Corporation (NASDAQ: MEOH) shares accounts for 74.80% of the company’s 76.20M shares outstanding. Mutual fund holders own 18.25%, while other institutional holders and individual stakeholders account for 47.25% and — respectively.

    It has a market capitalization of $1.51B and a beta (3y monthly) value of 2.28. The stock’s trailing 12-month PE ratio is 21.84, while the earnings-per-share (ttm) stands at $0.94. The company has a PEG of 0.28 and a Quick Ratio of 1.80 with the debt-to-equity ratio at 2.17. Price movements for the stock have been influenced by the stock’s volatility, which stands at 4.91% over the week and 4.91% over the month.

    Analysts forecast that Methanex Corporation (MEOH) will achieve an EPS of -$0.91 for the current quarter, -$0.82 for the next quarter and -$0.85 for 2021. The lowest estimate earnings-per-share for the quarter is -$1.6 while analysts give the company a high EPS estimate of -$0.4. Comparatively, EPS for the current quarter was $0.34 a year ago. Earnings per share for the fiscal year are expected to decrease by -83.70%, and 58.10% over the next financial year. EPS should grow at an annualized rate of 78.70% over the next five years, compared to -24.70% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 14 brokerage firm advisors rate Methanex Corporation (MEOH) as a “Moderate Buy” at a consensus score of 2.90. Specifically, 4 Wall Street analysts polled rate the stock as a buy, while 8 of the 14 advise that investors “hold,” and 2 rated it as a “Sell.”

    Looking at the support for the MEOH, a number of firms have released research notes about the stock. Scotiabank stated their Sector Outperform rating for the stock in a research note on June 04, 2020, with the firm’s price target at. Jefferies coverage for the Methanex Corporation (MEOH) stock in a research note released on May 01, 2020 offered a Buy rating with a price target of $36. Bernstein was of a view on April 21, 2020 that the stock is Mkt Perform, while Raymond James gave the stock Mkt Perform rating on March 30, 2020, issuing a price target of. Scotiabank on their part issued Sector Perform rating on March 19, 2020.


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